1995 (1) TMI 149 - AT - Central Excise

Summary

Issues:
- Appeal against order-in-appeal passed by Collector of Central Excise
- Differential duty demand due to higher average count in fabric
- Request for re-test of fabric sample by appellants
- Submission of independent laboratory report by appellants
- Arguments based on previous court rulings
- Confirmation of test results by Chief Chemist
- Upholding of impugned order by Appellate Tribunal

Analysis:
The appeal before the Appellate Tribunal CEGAT, New Delhi was directed against the order-in-appeal passed by the Collector of Central Excise (Appeals), Bombay. The appellants, a composite textile mill, held a Central Excise License for various fabrics and yarns, manufacturing controlled cloth under the Textile Commissioner's direction. A demand for differential duty amounting to Rs. 9,889.83 was raised due to a fabric sample, Sort No. 520, found to have a higher average count than declared by the appellants. The appellants requested a re-test of the sample, highlighting discrepancies in the test report. They submitted a report from an independent laboratory, ATIRA, supporting their declared count. The appellants cited previous court rulings to support their arguments, emphasizing the need for proper consideration of technical expert opinions. However, the Ld. SDR contended that the re-test by the Chief Chemist confirmed the original results, justifying the demand.

Upon reviewing the submissions, the Collector (Appeals) noted the appellants' contestation of the test results and the re-test by the Chief Chemist. The Collector found no reason to interfere with the lower authority's decision, citing adherence to natural justice principles. The Appellate Tribunal, upon considering the appellants' contentions, found them lacking merit. It was established that the appellants had requested the re-test, which confirmed the initial results. Consequently, the Tribunal upheld the impugned order, rejecting the appeal. The Tribunal emphasized that the appellants were bound by the re-test results obtained at their request, leading to the dismissal of the appeal and the affirmation of the duty demand.

In conclusion, the Appellate Tribunal CEGAT, New Delhi upheld the impugned order-in-appeal passed by the Collector of Central Excise, dismissing the appellants' appeal. The Tribunal found the re-test results conclusive, affirming the differential duty demand based on the higher average count in the fabric sample. The decision highlighted the importance of adhering to procedural requirements and accepting the results of re-tests conducted at the appellants' request, ultimately leading to the rejection of the appeal.